Operating revenue
|
2018 |
20171 |
20161 |
Operating revenue (GAAP) |
41,303 |
37,784 |
36,558 |
Operating expense
|
2018 |
2017 |
2016 |
Operating expense (GAAP) |
38,074 |
34,113 |
32,214 |
Less: Special operating expense |
−487 |
−176 |
−745 |
Equals: Operating expense, excluding special operating expense (non-GAAP) |
37,587 |
33,937 |
31,469 |
Less: Employee salaries and related costs |
−11,458 |
−10,941 |
−10,176 |
Equals: Non-labor operating costs |
26,129 |
22,996 |
21,293 |
Operating income
|
2018 |
2017 |
2016 |
Operating income (GAAP) |
3,229 |
3,671 |
4,344 |
Add: Operating expense: special charges |
487 |
176 |
745 |
Equals: Operating income, excluding special operating expense (non-GAAP) |
3,716 |
3,847 |
5,089 |
Net income
|
2018 |
2017 |
2016 |
Net income (GAAP) |
2,122 |
2,144 |
2,234 |
Add/less: Operating and nonoperating expenses: special charges, net of income taxes |
377 |
−79 |
588 |
Add/less: Economic hedge adjustment: Prior period gains/losses on fuel contracts settled in the current period |
0 |
0 |
6 |
Add/less: Interest expense on ERJ 145 finance lease |
26 |
0 |
0 |
Add/less: Less: Income tax benefit related to adjustments on ERJ145 leases |
−6 |
0 |
0 |
Equals: Adjusted net income (non-GAAP) |
2,519 |
2,067 |
2,828 |
Operating and nonoperating expenses: special charges
Operating and nonoperating special charges, net
|
2018 |
2017 |
2016 |
Operating expense: special charges |
487 |
176 |
745 |
Severance and benefit costs |
41 |
116 |
37 |
Impairment of assets |
377 |
25 |
412 |
Termination of engine maitenance service agreement |
64 |
0 |
0 |
Labor agreement costs |
0 |
0 |
171 |
Cleveland airport lease restructuring |
0 |
0 |
74 |
Sale of assets and other special gains/losses, net |
5 |
35 |
51 |
Nonoperating expenses: special charges, net of income taxes
|
2018 |
2017 |
2016 |
Nonoperating expense: special charges, net of income taxes |
−110 |
−252 |
−157 |
Unrealized (gains) losses on investments, net |
5 |
0 |
0 |
Loss on extinguishment of debt and other, net |
0 |
0 |
−108 |
Income tax benefit related to special charges |
−110 |
−63 |
−229 |
Income tax benefit associated with special tax adjustment |
−5 |
−189 |
180 |
Total operating and nonoperating expenses: special charges, net of income taxes
|
2018 |
2017 |
2016 |
Total operating and nonoperating special charges, net |
377 |
−79 |
588 |
Footnotes:
Notes: Pursuant to SEC Regulation G, UAL has included the above reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL’s ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel hedges settling in future periods and prior period gains and losses on fuel contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled hedges in a given period. Certain prior period amounts have been reclassified to conform to the current period presentation. For additional information related to special items, see Note 14 to the financial statements included in the 2017 Annual Report Form 10-K.